Discover Top Undervalued Small Caps With Insider Buying In United Kingdom September 2024
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As the FTSE 100 and FTSE 250 indices face turbulence due to weak trade data from China, investors are increasingly cautious about global economic conditions. Despite this, opportunities still exist within the undervalued small-cap sector in the United Kingdom, particularly those with insider buying—a key indicator of potential value and confidence in future performance.
Top 10 Undervalued Small Caps With Insider Buying In The United Kingdom
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Domino's Pizza Group | 15.0x | 1.7x | 39.27% | ★★★★★☆ |
| GB Group | NA | 2.8x | 36.89% | ★★★★★☆ |
| Genus | 154.7x | 1.8x | 5.09% | ★★★★★☆ |
| Bytes Technology Group | 26.6x | 6.0x | 5.23% | ★★★★☆☆ |
| CVS Group | 23.7x | 1.3x | 38.05% | ★★★★☆☆ |
| Essentra | 709.3x | 1.4x | 40.45% | ★★★★☆☆ |
| NWF Group | 8.8x | 0.1x | 34.66% | ★★★☆☆☆ |
| Alpha Group International | 10.1x | 4.7x | -25.51% | ★★★☆☆☆ |
| Harworth Group | 12.6x | 6.6x | -625.32% | ★★★☆☆☆ |
| Rank Group | 31.2x | 0.5x | 39.06% | ★★★☆☆☆ |
Let's review some notable picks from our screened stocks.
CVS Group
Simply Wall St Value Rating: ★★★★☆☆
Overview: CVS Group operates veterinary practices, laboratories, crematorium services, and an online retail business, with a market cap of approximately ￡1.34 billion.
Operations: The company generates revenue primarily from Veterinary Practices (￡573 million), Online Retail Business (￡49.6 million), Laboratories (￡31.4 million), and Crematorium services (￡11.6 million). The gross profit margin has ranged between 32.62% and 52.31%, reflecting changes in cost of goods sold over various periods.
PE: 23.7x
CVS Group, a UK-based company, has shown signs of being undervalued. Despite having high external debt, the company's earnings are forecasted to grow by 12.07% annually. Notably, insider confidence is evident as David Wilton purchased 2,500 shares worth ￡26,300 in recent months. This small cap stock's reliance on external borrowing poses some risk but its growth projections and insider activity suggest potential for future value appreciation.
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Navigate through the intricacies of CVS Group with our comprehensive valuation report here.
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Understand CVS Group's track record by examining our Past report.
Bytes Technology Group
Simply Wall St Value Rating: ★★★★☆☆
Overview: Bytes Technology Group is an IT solutions provider with a market cap of approximately ￡1.10 billion.
Operations: The company generates revenue primarily from its IT solutions segment, with recent figures showing ￡207.02 million. It has shown a net income margin of 22.63% and gross profit margin of 70.42%.
PE: 26.6x
Bytes Technology Group, a UK-based small cap, has shown insider confidence with significant share purchases over the past six months. They recently approved a final dividend of 6.0 pence per share and a special dividend of 8.7 pence per share at their AGM in July 2024, signaling strong shareholder returns. With earnings forecasted to grow by 9.23% annually and recent participation in industry events like Smarter Working Live 2024, Bytes demonstrates potential for future growth despite relying solely on external borrowing for funding.